Wide Disparities in the Income and Assets of People on Medicare by Race and Ethnicity: Now and in the Future

Section 2: Financial Assets and Savings

This section describes the total savings of the Medicare population across race/ethnicity in 2012. Total savings include retirement account holdings (such as IRAs or 401Ks) and other financial assets, including savings accounts, bonds and stocks. Savings are presented on a per person basis; for married people, savings are divided equally between spouses to calculate per capita savings.

Key Findings:

Nearly all (92%) Medicare beneficiaries had some savings, but rates were higher among white beneficiaries (95%) than among black and Hispanic beneficiaries (80% and 81%, respectively). Similarly, one in 20 white beneficiaries did not have savings or were in debt compared to nearly one in five black beneficiaries and Hispanic beneficiaries.

Half of all Medicare beneficiaries had less than $63,100 in savings in 2012. Median savings for white beneficiaries ($85,950) were more than seven times the median savings for black beneficiaries ($11,650) and Hispanic beneficiaries ($12,050).

Among beneficiaries with savings, half had less than $77,500 in savings in 2012; median savings for white beneficiaries ($95,900) were nearly five times the median savings for black beneficiaries ($19,700) and nearly four times the median savings for Hispanic beneficiaries ($25,150) in 2012.

While the top 10 percent of all black and Hispanic beneficiaries had savings above $137,200 and $215,550, respectively, the top 10 percent of white beneficiaries had savings above $723,200 in 2012.

The share of beneficiaries with any savings and the median savings among beneficiaries increased with income, with large racial/ethnic differences in savings across all income levels. Among beneficiaries who had incomes over 400 percent of the federal poverty level, median savings for white beneficiaries ($239,050) was nearly five times the median savings for black beneficiaries ($48,550) and more than three times the median savings for Hispanic beneficiaries ($71,400).

Median savings were higher among beneficiaries with more years of education, but differences in savings by race/ethnicity were evident across all education groups with the greatest disparities among beneficiaries with the most years of education. Among college-educated beneficiaries, median savings for white beneficiaries ($253,550) was nearly five times the median savings for black beneficiaries ($52,250) and more than four times the median savings for Hispanic beneficiaries ($57,000) in 2012.

Median savings were lowest among those age 85 and older ($40,900) and those under age 65 ($27,050), but median savings differed across race/ethnicity for all age groups. Among beneficiaries between the ages of 65 and 74, median savings among white beneficiaries ($118,400) was about six times the median savings among black and Hispanic beneficiaries $19,700 and $17,500, respectively) in 2012.

Median per capita savings were higher among married beneficiaries ($84,550) than among divorced, widowed, or single beneficiaries ($53,750, $41,450, and $19,300, respectively), with racial/ethnic differences in median savings across all marital groups. Among married beneficiaries, median per capita savings among white beneficiaries was $107,350, between five and six times the median savings among black and Hispanic beneficiaries ($18,800 and $19,650, respectively) in 2012.

Section 2: Financial Assets and Savings

exhibits

Share of Medicare Beneficiaries with Savings, by Race/Ethnicity, 2012

Nearly all (92%) Medicare beneficiaries had some savings, but rates were higher among white beneficiaries (95%) than among black and Hispanic beneficiaries (80% and 81%, respectively). Similarly, one in 20 white beneficiaries did not have savings or were in debt, compared to nearly one in five black and Hispanic beneficiaries.

Download Exhibit 2.1

Median Per Capita Savings of the Medicare Population, Total and by Race/Ethnicity, 2012

Half of all Medicare beneficiaries had less than $63,100 in savings in 2012. Median savings for white beneficiaries ($85,950) were more than seven times the median savings for black beneficiaries ($11,650) and Hispanic beneficiaries ($12,050) in 2012.

Download Exhibit 2.2

Median Per Capita Savings of the Medicare Population, Total and by Race/Ethnicity, 2012

Among beneficiaries with savings, half had less than $77,500 in savings in 2012; median savings for white beneficiaries ($95,900) were nearly five times the median savings for black beneficiaries ($19,700) and nearly four times the median savings for Hispanic beneficiaries ($25,150) in 2012.

Download Exhibit 2.3

Distribution of Savings of the Medicare Population, Among Those with Savings, By Race/Ethnicity, 2012

The top 10 percent of black and Hispanic beneficiaries had savings above $137,200 and $215,550, respectively, while the top 10 percent of white beneficiaries had savings above $723,200 in 2012. Similarly, while the top 1 percent of black and Hispanic beneficiaries had more than $699,450 and $1,082,750 in savings, respectively, the top 1 percent of white beneficiaries had more than $3,934,650 in savings in 2012 (not shown).

Download Exhibit 2.4

Median Per Capita Savings of the Medicare Population, by Federal Poverty Level and Race/Ethnicity, 2012

The share of beneficiaries with any savings and the median savings among beneficiaries increased with income, with large racial/ethnic differences in savings across all income levels. Among beneficiaries who had incomes over 400 percent of the federal poverty level, median savings for white beneficiaries ($239,050) was nearly five times the median savings for black beneficiaries ($48,550) and more than three times the median savings for Hispanic beneficiaries ($71,400) in 2012.

Download Exhibit 2.5

Median Per Capita Savings of the Medicare Population, by Education Level and Race/Ethnicity, 2012

Median savings were higher among beneficiaries with more years of education, but differences in savings by race/ethnicity were evident across all education groups with the greatest disparities among beneficiaries with the most years of education. Among college-educated beneficiaries, median savings for white beneficiaries ($253,550) was nearly five times the median savings for black beneficiaries ($52,250) and more than four times the median savings for Hispanic beneficiaries ($57,000) in 2012.

Download Exhibit 2.6

Median Per Capita Savings of the Medicare Population, by Age and Race/Ethnicity, 2012

Median savings were lowest among those age 85 and older ($40,900) and those under age 65 ($27,050), but median savings differed across race/ethnicity for all age groups. Among beneficiaries between the ages of 65 and 74, median savings among white beneficiaries ($118,400) was about six times the median savings among black and Hispanic beneficiaries $19,700 and $17,500, respectively) in 2012.

Download Exhibit 2.7

Median Per Capita Savings of the Medicare Population, by Marital Status and Race/Ethnicity, 2012

Median per capita savings were higher among married beneficiaries ($84,550) than among divorced, widowed, or single beneficiaries ($53,750, $41,450, and $19,300, respectively), with racial/ethnic differences in median savings across all marital groups. Among married beneficiaries, median per capita savings among white beneficiaries was $107,350, between five and six times the median savings among black and Hispanic beneficiaries ($18,800 and $19,650, respectively) in 2012.